Japanese equities performance and drivers GTM –UK | 52 TOPIX earnings and performance TOPIX vs. JPY/USD Index level, next 12 months’ earnings estimates (LHS); index level (RHS) Index level (LHS); price of US dollar in yen (RHS) 120 1,800 1800 130 TOPIX EPS TOPIX price level TOPIX 110 1,600 1400 110 100 1,400 1000 90 90 1,200 JPY/USD s 80 600 70 e '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 i t i 70 1,000 u Listed companies’ dividend pay-out and share buybacks Eq Yen trillions 60 800 20 50 16 Share buybacks* 600 12 Dividends 40 400 8 30 4 20 200 0 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '90 '95 '00 '05 '10 '15 Source: (Left) FactSet, TOPIX, J.P. Morgan Asset Management. EPS is earnings per share. (Top right) FactSet, TOPIX, J.P. Morgan Asset Management. (Bottom right) Nomura, J.P. Morgan Asset Management. *Share buyback data is for repurchases of common stock, excluding repurchases from Resolution and Collection Corp. and repurchases of preferred stock collected by Nomura. Guide to the Markets - UK. Data as of 31 December 2016. 52